Olivier Colombo - Consultant & Corporate Advisor
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MusclePharm (MSLP) Reports AMAZING 2014 First Quarter

Today MSLP reported AMAZING numbers!!!! I continue to believe the stock is worth at least 15$ in the next 6-12 months

First Quarter Revenue More Than Doubles to $50.2 Million; Company Swings to Profit of $2.7 Million and $0.23 per Diluted Share

Increases 2014 Full-Year Guidance to $165 - $175 Million in Net Sales With Earnings of $0.41 - $0.51 per Diluted Share vs  former guidance of 150Mil$ and a profit of $0.22-$0.23 cts

DENVER, CO MusclePharm Corporation (MSLP) a scientifically driven, performance-lifestyle sports nutrition company today announced financial results for the first quarter ended March 31, 2014.

The following comparison refers to results for the first quarter of 2014 versus the first quarter of 2013. Net sales increased 123 percent to $50.2 million from $22.6 million last year, primarily as a result of increased market penetration both domestically and internationally. A key area of growth was international sales, which increased 176 percent to $17.2 million, or 34.3 percent of net sales, from $6.3 million last year, or 27.7 percent of net sales.

Gross profit was $17.9 million, compared with $8.2 million last year. As a percentage of net sales, gross profit was 35.6 percent, compared with 36.2 percent last year. The year-over-year decrease in gross margin percentage related to the timing of rebate accruals in the first quarter last year.

Operating expenses as a percentage of net sales decreased to 30.8 percent, compared with 39.4 percent last year.

Net income was approximately $2.7 million, or $0.23 per diluted share, compared with a net loss of approximately $7.4 million, or $1.78 per share, for the same period last year.

At March 31, 2014, the Company had approximately $5.8 million in cash and restricted cash.

"MusclePharm had an excellent quarter, achieving profitability for the first time with significant top-line expansion," said Brad Pyatt, MusclePharm's Chairman and Chief Executive Officer. "Our results were fueled by strong international sales, which we believe will continue to present significant opportunities for the Company.

"Over the last two years we worked diligently to introduce our products to international markets and took further steps to improve the Company's sales cycle. While we have much work left to do, particularly with respect to the labeling for recently developed products, as well as further steps to improve distribution, we are encouraged by our prospects moving forward," Pyatt added.

Recent Highlights

  • Continued traction through the Company's master brand strategy across all domestic retail channels with MusclePharm® Hybrid and Core Series, Arnold Schwarzenegger Series™ and FitMiss® gaining market share and outpacing category growth;
  • Furthered international expansion through strategic distributor/retailer model and built to order new product introductions in Australia, Brazil and the E.U.;
  • Expanded relationship with Costco to now include four countries: Australia, Canada, South Korea, and the U.S.;
  • Successfully integrated the assets of BioZone Pharmaceuticals and its subsidiaries, and began development on a number of new MusclePharm products;
  • Signed a multi-year endorsement deal with fitness model and motivator Jen Selter. The agreement adds to the Company's presence in the rapidly expanding world of women's fitness for its brand FitMiss®.
  • Reported strong results from the Arnold Schwarzenegger Blue Print campaign, with record engagement on BodyBuilding.com. The campaign drove more than 650,000 unique visitors to the site, with more that 7.5 million minutes spent viewing content and 4.6 million total page views. This resulted in the Arnold Stack becoming the top selling stack on the site;
  • Began a college campus and event tour, visiting more than 30 schools and holding various events;
  • Appointed former MusclePharm director, Donald Prosser, to serve as the Company's Chief Financial Officer and Principal Accounting Officer and promoted Richard Estalella to serve as the Company's President in addition to his role as Chief Operating Officer; and,
  • Published a double-blind placebo-controlled clinical study in the journal Nutrition Research, demonstrating safety and efficacy of MusclePharm's pre-workout supplement Assault™.

2014 Full-Year Guidance

MusclePharm has revised its full-year guidance for 2014 as follows:

  • 2014 full-year net sales of approximately $165 - $175 million
  • Diluted earnings per share in the range of $0.41 - $0.51

Guidance is based on a fully-diluted share count of approximately 13.5 million and does not include the potential impact of share repurchases under the Company's share repurchase plan.

"We believe that MusclePharm's brand experience is second to none and that our products fulfill a unique need in the sports nutrition marketplace, with clinically tested, scientifically based nutritional products that are certified banned substance free. Backed by recognized athletes and with products that have varied demographic appeal both domestically and internationally, we are confident in our ability to deliver strong revenue growth and enhance profitability for our shareholders," Pyatt concluded.

2014 First Quarter Conference Call Information

When:  Tuesday, May 6
Time:  8:30 a.m. Eastern Time
Phone:  1-877-407-9126 (domestic)
1-201-493-6751 (international)

A live Webcast will be available online on MusclePharm's website at http://ir.musclepharmcorp.com, where it will be archived for one year.

An audio replay of the conference call will be available through midnight May 13, 2014 by dialing 877-660-6853 from the U.S. or Canada, or 201-612-7415 from international locations, passcode 13581597.